Euro Rallies on Greek Polls Favouring Pro-Bailout Parties

The euro rallied against the US dollar in Asian trading on Monday morning after new opinion polls showed Greece's conservatives gaining ground over the anti-bailout Syriza party. The conservatives, who support the bailout, had a slight lead, which is causing some relief among investors.

The euro traded as high as 1.2578 compared to Friday's close of 1.2515 in New York. By 8 a.m. Singapore time, it was at 1.2560. The currency's increase is attributed to the possibility of a pro-bailout government forming in Greece.

This rally is seen as a relief move, pricing out the risk of a chaotic Greek default. It's not a strong indication that the crisis has been resolved, but rather a reaction to reduced fears of an extreme outcome.